Lithium deal foreshadows US listing, expansion trail

By YOKE HAR LEE

Technology development company Pacific Lithium, after its merger with Lithium Technology Corporation in the US, will seek to raise $US50 million to $100 million from an initial public offering on Nasdaq in August.

The merged company, Ilion Technology Corporation, will then pursue an aggressive expansion and acquisition trail, said Robin Johannink, managing director of Pacific Lithium.

"It [money raised] will be for a combination of expanding the plants and for acquisitions - we have a specific plan for acquiring competition.

"In the market there, nobody wants to see anyone grow step by step. They want aggressive growth."

Pacific Lithium has around 650 shareholders, mostly in New Zealand, with others in Australia, Japan and Singapore and the US.

Pacific Lithium has for the past year worked with US Capital Consultants in the States to get itself and Lithium Technology into shape for the initial public offering.

Pacific Lithium is involved in purifying high-grade lithium, which is onsold to Japanese battery manufacturers.

It is also developing a high-temperature- stable manganese-based cathode material for batteries used in powering hybrid electric cars.

Lithium Technology is commercialising a rechargeable lithium ion polymer battery cell for portable functions, such as mobile phones, laptops and other electronic devices.

The merger agreement between Lithium Technology Corporation and Pacific Lithium was signed in New York last week.

Since then, Lithium Technology's stocks, which are listed on the US over-the-counter bulletin board, have risen 200 per cent.

Pacific Lithium shareholders will get one Ilion Technology share for every Pacific Lithium share, while Lithium Technology shareholders will get one Ilion share for every 14 shares they hold.

From now until the public offer, Lithium Technology and Pacific Lithium will operate as partners in pursuing lithium polymer battery opportunities worldwide, with Lithium Technology serving as full-time exclusive consultant to Pacific Lithium.

Pacific Lithium has also just concluded a deal with the Qinghai Provincial Government (Central) to have exclusive access to what it says is the world's largest known unexploited lithium reserve.

By the end of this year, the merged company expects to supply 20 per cent of the world's lithium market.

Related site:

Pacific Lithium